Automotive Race Gets Tight in Iran

Iran’s largest private automaker Kerman Khodro is hoping to raise capital by a public stock offering, an initiative that can shake things up and alter the status quo of Iran’s auto market.
According to Mizan Online, the corporation is not setting any restrictions for the purchase of stocks by the public or other companies, meaning the stock sales can lead to other auto manufacturers of the country claiming a share of the firm. Hamed Shadkam, deputy for the automotive group’s subsidiary Kerman Motor outlined the plan.
The move can reshuffle the status of automakers as SAIPA is racing toward the title of the largest auto manufacturer in the country and Iran Khodro is sparing no effort to sustain the prevailing state. Both firms are expected to be among eager bidders for Kerman Khodro shares.
Kerman Automotive Industries Group first engaged in the globally accepted practice the previous year, issuing one trillion rials ($23.8 million) of Murabaha bonds to finance its projects.